The £800 to £1 million challenge kicks off with the first trade being executed on Aquinox Pharmaceuticals. As we go along in the challenge you will notice that I am a Special Situations Equities trader. I utilise Exchange Traded Options to go Short and in the case of this trade, I have chosen this stock as it was savaged by the market in the last few weeks due to a failed 3rd stage test.
Interestingly though Seeking Alpha highlighted that:
"It is possible that a strategic option could be accomplished for Aquinox, this would come either as a merger with another pharmaceutical company or being bought out by one.
Aquinox is still developing rosiptor in a phase 2 proof of concept study for patients with chronic rostatitis/chronic pelvic pain syndrome with results expected by July of 2019."
I love these sorts of plays. A stock with healthy cash reserves, a solid balance sheet, savaged by a market because of one poor news announcement. This tells me that the stock is considerably oversold and the bounce back could be swift. I am looking for the gap to be 30 - 40% closed, which equates to a price level above the $6.50 mark.
Degiro Trade Confirmation Details
03/07/2018 16:32 03/07/2018 Buy 100 AQUINOX PHARMACEUTICAL@2.64 USD (US03842B1017) Aquinox Pharmaceuticals USD -264.00
Interestingly though Seeking Alpha highlighted that:
"It is possible that a strategic option could be accomplished for Aquinox, this would come either as a merger with another pharmaceutical company or being bought out by one.
Aquinox is still developing rosiptor in a phase 2 proof of concept study for patients with chronic rostatitis/chronic pelvic pain syndrome with results expected by July of 2019."
I love these sorts of plays. A stock with healthy cash reserves, a solid balance sheet, savaged by a market because of one poor news announcement. This tells me that the stock is considerably oversold and the bounce back could be swift. I am looking for the gap to be 30 - 40% closed, which equates to a price level above the $6.50 mark.
Degiro Trade Confirmation Details
03/07/2018 16:32 03/07/2018 Buy 100 AQUINOX PHARMACEUTICAL@2.64 USD (US03842B1017) Aquinox Pharmaceuticals USD -264.00